Nestor Initiates Pilot Automated Traffic Safety Program in Blackstone, Massachusetts
November 16, 2007: 09:46 AM EST

Nestor, Inc. (NASDAQ: NEST) is pleased to announce that it has commenced the warning period for a pilot automated speed enforcement program in Blackstone, Massachusetts. This program, believed to be the first of its kind in the Commonwealth of Massachusetts, has been instituted by Nestor Traffic Systems, Inc. and the Town of Blackstone as part of the Town's comprehensive initiative to improve road safety.

Speeding is a well recognized problem in the Commonwealth and Blackstone has committed itself to consistent, uniform enforcement with the goal of changing driver behavior. Nestor's state of the art technology provides the most effective means of achieving this goal. A recent rash of speed related traffic fatalities in Massachusetts has added a sense of urgency to the program.

Blackstone's pilot program, which commenced last week, involves a 30 day warning period during which violators will receive written warnings in the mail. After the 30 day warning period, alleged violators will receive actual citations in the mail. Before a citation is issued, an official from the Blackstone police department will review the speed data and photographs of the incident and compare the photograph of the driver to Registry of Motor Vehicle records. Once the identity of the driver and the nature of the violation are confirmed, Blackstone police will authorize the issuance of a citation to the alleged violator through the mail.

Blackstone and Nestor Traffic Systems have set a 30 day period for actual citation issuance following the warning period. After completion of this 30 day period, Blackstone will assess the effectiveness of the program and consider whether to continue it on an ongoing basis.

Nestor's Chief Executive Officer, Clarence A. Davis, stated: "We are proud to partner with the Town of Blackstone in this important safety program. Blackstone has demonstrated an admirable commitment to public safety and has taken the initiative to bring the very best technology to bear on the serious speeding problem facing the Town."

Ross Atstupenas, Blackstone's Chief of Police, said about the initiative, "We look forward to working with Nestor to bring their speed enforcement safety system to Blackstone. In today's world, it is important to utilize every public safety tool available to assure that a police department can meet the needs of its community. This public safety initiative will assist in this critical mission, and Nestor has been a great partner in advancing this effort."

Statements in this press release about future expectations, plans and prospects for Nestor, including statements containing the words "expects," "will," and similar expressions, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not meet the expectations disclosed in our forward-looking statements and investors should not place undue reliance on those statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including: market acceptance of our products, competition, legal and legislative challenges to automated traffic enforcement, and other factors discussed in Risk Factors in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. Investors are advised to read Nestor's Annual Report, quarterly reports on Form 10-Q and current reports on Form 8-K filed after our most recent annual or quarterly report. The forward-looking statements in this letter represent our current views and we disclaim any obligation to update these forward-looking statements.

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